Honestly, for the money, I am not sure anything beats the new GoPro Hero 3 under water. I have seen some amazing shots from it. And to top it off you can have a lot of fun with one.

I have a go pro, if you want to use the go pro underwater, you have to buy the flat port for it, the curve port, will not focus underwater.

The 3 comes with a flat lens.

Mines the older model, had to buy it:(

+1 on the Hero3 with a red filter. You might even be able to get a full rig with lighting for that budget. You would be amazed at how well this rig works.

Here's some good reading..
http://www.backscatter.com/learn/art...icle.php?ID=57

Ok just checked and I guess the full rig with light is more like $870 but still what you're getting for that is pretty awesome.
http://www.backscatter.com/HostedSto...ftn=youbetcha&

I have an actual HD underwater video system

Sony HDR-HC9 Camcorder in a

http://www.backscatter.com/sku/gt-hc7.lasso

with WP25 FathomWide Angle Port , and flat port etc.

and 2 sets of Niterider HID lights

http://www.leisurepro.com/Prod/NTR2040.html

but a little outdated, still works, but with the weight restrictions of airlines,
I will using a Nikon D800 underwater, since it does 36 meg still and HDV video.

So did you choose the one you wanted. How are the pics coming?